Revenue & Cost Diagnostics
Profit = Revenue − Cost. Decompose Revenue into Price × Volume (by segment). Decompose Cost into Fixed vs Variable costs.
Master Profitability Trees, Market Entry, M&A Due Diligence, Market Sizing, and Verified Case Math for McKinsey, BCG, Bain, and strategy consulting loops.
Structured mental models for diagnosing and solving client business challenges.
Profit = Revenue − Cost. Decompose Revenue into Price × Volume (by segment). Decompose Cost into Fixed vs Variable costs.
Evaluate Market Attractiveness (Size, Growth, Margins), Competitive Landscape, Customer Segments, Company Capabilities, and Financial Feasibility (NPV/Payback).
Assess Strategic Rationale, Revenue & Cost Synergies, Valuation & Financing Mix, Integration Risks, and Post-Merger Cultural Alignment.
Top-Down: Population → Demographics → Penetration Rate → Annual Spend. Bottom-Up: Units/Location $\times$ Locations $\times$ Price/Unit.
Memorize these baseline numbers for fast, defensible estimation during market sizing cases.
| Geography / Metric | Standard Baseline Constant | Estimation Rule |
|---|---|---|
| US Population | 330 Million (~300M for rounding) | ~120 Million households (~2.5 people/household) |
| European Population (EU) | ~450 Million | ~180 Million households |
| Global Population | ~8.0 Billion | ~2 Billion households |
| Average US Life Expectancy | ~80 Years | ~4 Million people per single-year age cohort |
Tips for structured synthesis, business intuition, and case math fluency.
A typical McKinsey, BCG, or Bain case interview consists of 5 phases: Problem Statement Clarification & Hypothesis → MECE Issue Tree Structuring → Data Analysis & Mental Math → Brainstorming & Creativity → Synthesis & Final Recommendation.
MECE stands for Mutually Exclusive, Collectively Exhaustive. It ensures that every branch of your issue tree covers a distinct domain without overlap while together covering 100% of the potential problem space.
ClawPad stages the case math so you rehearse population sizing formulas, revenue trees, and break-even calculations step by step, and the capacity calculator lets you sanity-check your own numbers before you say them.